Avenue Energy has entered into an agreement with the Sayer Group Consortium (SGC) and Middle East Petroleum Services (MEPS) to acquire up to a 45 percent participation in certain oil and gas rights and properties located in Turkey. Avenue made has made a $1.25 million payment to participate and acquire interest in the Tosun-1 well and license.

On December 20, the parties modified certain payment terms of the agreement to extend the due dates with respect to the remaining payments, pursuant to Tosun-1, which lies immediately adjacent to the producing Cendere and Karakus oilfields in Southeast Turkey. Drilling operations, which were temporarily suspended for Ramadan, have recommenced and are expected to continue over the next 60 to 90 days.

Under the terms of the modified agreement, Avenue has committed to making a further payment of $500,000 on or before February 10, 2003, which will lift Avenue's equity in the Tosun well and license to 35 percent.

Avenue has the option, exercisable by February 10, to make a final payment of a further $500,000, which would complete its turnkey cost of $2.5 million for a 45 percent interest. In the event of a discovery, Avenue's contribution towards electric logging, running a production string, testing and completion costs is capped at $250,000. — (menareport.com)